Passkeys Gain Traction with Ecommerce Shoppers

Passkeys have revolutionized the way users access their secure accounts without the hassle of passwords. The FIDO Alliance introduced passkeys in 2022, with ecommerce businesses being the first to embrace this innovative technology. FIDO, which stands for Fast ID Online, aims to reduce the world’s reliance on passwords and enhance online security.

According to Andrew Shikiar, the executive director of FIDO, the past two years have been pivotal for members and ecommerce establishments. Companies like PayPal, eBay, Amazon, Walmart, Best Buy, and others were quick to adopt passkey payments to attract customers and safeguard against cyber threats like account takeover and phishing attacks.

Shikiar highlighted the increasing awareness of passkeys among consumers, rising from 39% in 2022 to 57% in 2024, as per a FIDO survey conducted across multiple countries.

Dual Protection for Users

Passkeys not only secure logins but also protect payments, ensuring that only legitimate users can access accounts or make purchases. Leveraging public key cryptography, passkeys use a public key for encryption, while the private key remains securely stored on the user’s device. This dual-key system provides a quick and secure sign-in process, making it challenging for fraudsters to gain unauthorized access.

At the FIDO Authenticate conference in October 2024, Amazon reported a significant 15% increase in sign-in success rates, demonstrating the effectiveness of passkeys in enhancing user experience and security.

Preparing for Passkey Implementation

Emily Baxter, a security consultant at RPY Innovations, advised merchants to evaluate their readiness for adopting passkeys by considering user acceptance and necessary integrations. It’s crucial for merchants to engage their security teams in assessing organizational readiness and aligning passkey implementation with their overarching objectives.

Merchants should assess the potential impact of passkeys on user experience, considering factors like device usage, user adoption, training requirements, and overall cybersecurity strategy. Passkey Central by FIDO serves as an educational resource for merchants looking to implement passkeys seamlessly.

Frequently Asked Questions

1. How do passkeys enhance online security?

Passkeys use a dual-key system to securely authenticate users, reducing the risk of unauthorized access and cyber threats.

2. Can passkeys be implemented on all devices?

Passkeys can be configured to work on various devices, ensuring flexibility and convenience for users.

3. Do users have control over their passkey information?

Users retain control over their private keys, ensuring confidentiality and security for their online transactions.

4. Are passkeys mandatory for all online transactions?

While passkeys offer enhanced security, user adoption may vary, and merchants can choose to implement them based on their specific needs.

5. How can merchants find certified passkey solution providers?

FIDO’s ecosystem offers a wide range of certified vendors who can assist companies in implementing passkeys efficiently and securely.